SOC GEN: The world’s ageing population is a big positive for Hermes and other ridiculously expensive brands


It’s no secret that the world’s developed countries have cashed up, ageing populations. One possible beneficiary? The luxury goods market.

In a research note on ageing populations in developed countries, Societe Generale has selected a list of 40 companies with metrics based on historical performance relative to GDP growth and current market cap. The 40 make up a ‘Silver Economy Index,’ which the bank thinks will provide exposure to industries that stand to benefit from an ageing consumer base.

Some sectors chosen, like wealth management and health services, make immediate sense in a connection with older populations. But check out the legendary luxury goods companies that made the cut in SocGen’s index:

SG Cross Asset Research/SR

A who’s who of global fashion behemoths, including Christian Dior and LVMH, stand to benefit, the bank’s analysts say.

“Euromonitor expects luxury goods, a $370bn market that has seen a 4.6% compounded annual growth in the past five years, to grow 5.4% over the next five years. The older segment of the population is more willing and able to purchase luxury goods.”

Ageing populations across OECD countries will create a tectonic demographic shift that governments are already trying to plan for. In SocGen’s estimation, however, a strong market will take shape in the luxury goods sector as older consumers with more disposable income drive strong demand for high-end clothing and accessories.